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Better Future Forward, College Possible, and Jack Kent Cooke Foundation Launch ISA Fund to Help Low-Income Students Afford CollegeNEW YORK, Nov. 15, 2018 /PRNewswire/ -- Better Future Forward (BFF) announced a new multi-state social impact ISA fund aimed at increasing college access and affordability for low-income students. The fund will provide broadly-accessible, low-risk financing through income share agreements (ISAs). The ISA fund is a collaboration between Better Future Forward, a non-profit ISA provider, College Possible, a leading college access and success organization, and the Jack Kent Cooke Foundation (the Cooke Foundation), the country's premier scholarship organization for high-achieving students with financial need. With a $1.1 million program-related investment from the Cooke Foundation, Better Future Forward will provide 120 College Possible students with ISA financing for tuition, fees, books, and/or living expenses. The ISA funding is designed to supplement grant-based financial aid and federal student loans, reducing students' use of private loans, credit cards, and part-time jobs to pay for their degrees. College Possible students in Minnesota and Wisconsin attending a range of institutions are eligible to apply for Better Future Forward's impact ISA financing for the 2018-2019 academic year. Approved schools range from the University of Minnesota-Twin Cities and the University of Wisconsin-Madison to Marquette University and St. Olaf College. The ISA's terms are based on each institution's track record of helping students graduate and transition to a career. BFF does not use students' credit scores or a cosigner to underwrite ISAs, ensuring students can access the program based on their future potential—not their family's socioeconomic status. ISAs provide students with funding for current educational pursuits in exchange for a defined percentage of their post-graduation income, for a defined period of time. There are thresholds and caps on ISA payments, and they are always income-contingent – when a graduate struggles, the ISA obligation is negligible or nothing, and when they thrive, the ISA obligation scales with their success. After the ISA duration has ended, the graduate has no further obligation—even if they have paid back less than they originally received. Unlike loans, there is no principal to repay, interest to accrue, or fixed minimum payments required when graduates can least afford them. Importantly, by linking payments to post-graduation income, ISAs align the interests of students and the organizations helping to finance their education. "This fund will open doors for all College Possible students who are sprinting toward their college degree but need additional financial support to ensure that they reach the inish line," said Kevin James, founder and CEO of Better Future Forward. "ISA funds succeed and grow when the participating students are thriving, which is why College Possible and the Cooke Foundation are such natural partners in this effort. We are all focused not just on providing high-quality financial aid, but on driving systems of change that decrease debt loads, increase graduation rates, and expand access to proven programs and stable jobs." Jim McCorkell, College Possible CEO and Founder, commented, "College Possible's mission is to make a college degree possible for every student by providing coaching that helps them overcome barriers to enrolling in and completing college. But one barrier that coaching can't typically overcome is financing, which is often enough to stop a student from earning a degree. Private loans are risky when they're not altogether inaccessible to our students, and we know the alternative of working full-time while in school can have huge and unfortunate consequences as well. This ISA fund is a promising financing option tied to our students' future success, empowering us to work with each student to devise a financial aid package that gives them the best chance of completing college and thriving afterward." "We are excited to invest in Better Future Forward's efforts to use ISAs to accelerate economic mobility and expand educational equity for students in Minnesota, Wisconsin, and nationwide," added Seppy Basili, Executive Director of the Jack Kent Cooke Foundation. "The Cooke Foundation is dedicated to advancing the education of high-achieving students with financial need. We believe that Better Future Forward's approach to ISAs is a natural complement to our core scholarship programs. By making one of our first-ever program-related investments in BFF's College Possible ISA fund, we are able to improve the futures of even more students while building momentum for ISAs as a new engine of opportunity and equity in higher education." Students can learn more about BFF and College Possible's ISA program at www.betterfutureforward.org/college-possible. About Better Future Forward About College Possible About the Jack Kent Cooke Foundation Media Contacts: Better Future Forward: College Possible: Edie Turnbull, College Possible Wisconsin Jack Kent Cooke Foundation:
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